Range Action Verification Index (Ravi) Indicator - best Oscillator indicators - forex trading softwears

'''Description'''

Tushar Chande published the RAVI indicator (Rapid Adaptive Variance Indicator) in his book "Beyond Technical Analysis" in 1997. Like the ADX, the RAVI indicator differentiates between a trending market and a trading market. Even though RAVI steps the trend intensity, it does perhaps not distinguish which method the trend is going. As a result: a rising RAVI shows the start of a trend or a rise in trend intensity
, but maybe not the trend way. Similarly, a falling RAVI shows the finish of a trend or a decrease in trend intensity, but maybe not the trend way it self. A distinction between these two indicators that is worth mentioning is the RAVI indicator often reacts more quickly and exhibits a far more pronounced curve than the ADX.

'''Calculation'''

To begin with, the 65 MA is subtracted from the 7 MA, and also this difference is split by the 65 MA. The quotient is multiplied by 100. So as that a confident outcome is definitely accomplished, the absolute value of this product is created.

'''Parameters'''

The adjustable period size for both MAs could be opted for from 1 to 500. For the most frequent environment of the time scale length, Tushar Chande proposed that the shorter MA be 10 % of the longer MA.

'''Interpretation'''

The larger the RAVI, the more the trend intensity therefore the stronger the underlying trend.
Note: for as long as the RAVI is rising, oscillators must not be utilized. The RAVI may be used as a filter between oscillators and trend-following indicators.

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